As states step up their deregulation of the $200 billion U.S. power industry, a few energy-savvy banks are cautiously financing the sector.

In California, a pioneer of the deregulation movement, Union Bank of California in March syndicated $105 million in loans for the central system used by the state's three major power companies. BankAmerica Corp., meanwhile, has financed $300 million in construction costs.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.